Canada鈥檚 Barrick Gold (TSX:ABX)(NYSE:GOLD), the world鈥檚 second-largest producer of the precious metal,聽 it聽had pinned down assets worth about $1.5 billion that it intends to sell through next year, adding it also remains open to acquiring new projects.
President and chief executive officer, Mark Bristow, said Barrick would offload the unwanted assets once they are optimized enough to create adequate value for shareholders.
The goal is for the sale process to be well advanced by mid-2020, the executive added.
Barrick聽has pinned down assets worth about $1.5 billion to sell through next year
BMO Capital Markets analyst Andrew Kaip,聽, accounting for 750,000 ounces of gold and 400 million pounds of copper production that the new Barrick is likely to put on the chopping block.
Kaip believes the largest potential deal would be Barrick鈥檚 Lumwana copper mine in Zambia, which could fetch as much as $1.3 billion.
The merged mining company may also sell its 50% stake in Chile鈥檚 Zaldivar mine and Randgold鈥檚 Tongon, Massawa and Morila assets.
Bristow鈥檚 comments came as Barrick of $111 million for the January-March period, or six cents per share, about 33% below the nine cents per share analysts on average had expected.
The figure is also down from a profit of $158 million, or 14 cents per share, in the same quarter last year.
The Toronto-based miner, which keeps its books in U.S. dollars, said quarter on quarter comparisons were skewed by the recent and touted .
Revenue, in fact, totalled $2.09 billion, up from $1.79 billion in the same quarter of 2018, while January-March gold production was up 8% to 1.367 million ounces from 1.049 million in the first quarter last year and 1.262 million in the fourth quarter.
The company also payable on June 17 to shareholders of record at the close of business on May 31.
Officials said this was in line with the commitment the company made when the $18.3 billion merger with Randgold was .
鈥淲e have gone a long way towards integrating the organizations, streamlining the processes and ensuring that all the sites have the geological, operational and technical capability to meet their business objectives,鈥� Bristow聽.
鈥淲e鈥檙e also well advanced in establishing our new joint venture with Newmont, which has been named Nevada Gold Mines. The organizational structures are being finalized and we鈥檙e working together with Newmont to realize the synergies and cost-reduction opportunities offered by the joint venture, which is scheduled for completion by the end of the second quarter.鈥�
Fixing Tanzania tax row
Since becoming Barrick鈥檚 new leader this year, Bristow鈥檚 biggest headache has been the company鈥檚 majority-owned African subsidiary, Acacia Mining (LON:ACA). The unit has been embroiled in a聽, when the country鈥檚 government banned exports of unprocessed metal and slapped it with聽鈥� equal to almost two centuries worth of revenue.
The relationship between Barrick and its 64%-owned聽Acacia has been strained and progress moving an agreement forward has been almost impossible,聽Bristow said on Wednesday.
鈥淚t鈥檚 a tragedy,鈥� he told Bloomberg. 鈥淲e鈥檙e dealing with a complete breakdown of relationships.鈥�